Understanding Customer Relationship Management (CRM)

Customer Relationship Management (CRM) is a strategy employed to focus on customer relationships and maximizing the profit margin on those relationships.  It’s often referred to in a broad way and for good reason.  There are hundreds of variables that could be considered in the development of a CRM model which makes customization vital.  Each organization must customize their CRM to specifically address their own customer base needs.  What works for a computer chip maker doesn’t work for the retailer selling to the consumer.

Three Pillars of Customer Relationship Management

Increased Revenue from Improved Targeting

Gaining a better understanding of past and current customers provides an advantage when searching for future customers.  Improved targeting reduces advertising costs resulting in higher ROI per customer.

Increased Wallet Share with Current Customers

Getting a customer to spend more money is the logic behind this pillar.  This can be achieved by upselling the current purchase or service agreement.  Selling additional items is another example of increased wallet share.

Longer retention of customers

Extending a service agreement before it expires or earning a repeat customer are examples of having longer retention of customers.  The cost of acquiring a new customer is approximately 5 times higher than the cost of retaining a current customer (Akhter, 2012).

 

-Jovan Vaughn, M. B. A.

Marketing Strategist

Solutionsandstrategies.co

Akhter, S. (2012). Strategic Marketing. Atomic Dog Publishing. Cincinnati, OH.

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White Paper (Organizational Resistance to Advancements in Information Systems)

 White Paper (Organizational Resistance to Advancements in Information Systems)

Jovan Vaughn

Management Information Systems

Abstract

This paper will offer a perspective and solution to Employee Resistance to Advancements in Information Technology.  There are several possible reasons for why employees resist.  In my opinion the most influential factors are possible employment cuts and additional workload resulting in time spent training & implementing new IT.   Throughout this paper I will clearly define why a successful transition into new Information Technologies is the responsibility of Management.

 Introduction

The long storied topic of people vs. the machine is still prevalent today.  Constant improvements in Information Systems and Information Technologies has caused unrest amongst employees directly impacted by such changes.  Employee unrest results in resistance to new Information Technology.  In this dilemma lies the responsibility of Managers to expedite a successful transition between the organization and new Information Systems and Technology.  The possibility of employment cuts as a result of new Information Technology and additional workload resulting from the time spent learning and implementing new IT are the threatening factors that cause employees to resist incorporation of new technologies.  Poor expedition of new Information Technologies could result in severe lag time in employees learning software, which could lead to a costly drop in production.  It could also cause a high rate of employee turnover.

 Background of Issue

            Every technological boom offers established organizations as well as new to market organizations the opportunity to maximize its valuable resources and innovate new processes that could decrease operational costs as well as increase profit margins.  The two most recent tech booms have molded the way organizations operate business processes. The computer and internet boom have provided endless advantages to customers and organizations alike.  Every department within an organization utilizes computers and the internet to maximize productivity.  When an organization makes the decision to invest in new information technology, the pivotal factor in successful implementation of such new technology is found in the practices of the manager.  If the manager succeeds in this transition, then the organization will benefit by having empowered employees with advanced tools to achieve a higher level of success.  All things being equal, this success usually results in a higher profit margin and an increase in market share of their respective industries.

If the managers of an organization fail to expedite the transition to new technologies, then employee resistance can begin immediately.  Employee resistance to new technologies has an immediate hindrance on productivity as well as damaging factors to its long term success.  The key factors leading to employee resistance are fears of employment cuts and additional workload from training & implementation of new IT.

Reasons for Employee Resistance

The fear of failure and the fear of replacement when being trained causes panic in minds of employees.  An organization must understand employees are disadvantaged when training starts with panic.  This in turn reduces the learning curve and causes a lag in successful implementation and integration of new technologies.  In my opinion employees begin to think how new technologies could negatively impact their employment rather than how it could save time and increase individual production.  In some cases employees will intentionally resist learning and turn negative energy to the individuals conducting the training.  Making employees feel distant from the organization and even the possibility of employee turnover.  This is an example of how a poor transition into new Information Technologies by managers can lead to employee resistance.

Employee Perception of Additional Workload

It is common for employees engaged in the training of new technology in the organization to be fearful of an increase in workload resulting from new technologies which typically leads to bottlenecking.  In most cases there is a short-term increase in workload because employees usually must learn the new technology on the go.  A new technology means new routines and processes to complete job duties.  Adding training hours and new routines can be overwhelming and cause panic amongst employees learning new technologies.  Not properly addressing the additional workload resulted from new technology implementation can make employees feel taken advantage of and not properly compensated. Disgruntled employees are not the intention of organizations adding new technology, but it could be the result if the transition is not properly managed.

Solutions

 Empowering Department Managers

When organizations add new technology they should integrate and offer management the earliest notice to begin the transition. Allowing management to involve employees at an early stage make employees feel empowered.  The employees will also look at the addition as advancing their career and not as if they’re being replace.  An organization will experience immediately resistance if the employees using the new technology are the last to know of its integration.  Having an initial meeting discussing the arrival date, expected training time, and the final date of integration will make the employees feel included in the process.  Highlighting the ways in which employees will benefit from the new technology in the initial meeting will create a sense of comfort and excitement towards the new technology.  It is imperative employees understand how they will benefit from the changes before they are required to attend mandatory training and take on an additional workload.

Early Stage Employee Integration

Offering employees ample notice of intended training also helps employees maintain their workload and prevent the feeling of being overworked.  Early notice allows employee sufficient time needed to finish loose end projects.  Resistance will occur when employees facing a work deadline must also participate in training of a new technology.  If the management team coordinates new technology training around work deadlines then the pressure of being overwhelmed will be far less significant.  This will result in less fear of change and of failure in the new technology.  A good observation of this was displayed in an article of the Harvard Business Review, Employees See Death When you Change Their Routine, by Bailey & Raelin.  According to Bailey & Raelin, employees resist change because they were told for so long to complete their jobs one way and a change in their routine leads to rebellious nature.

Conclusion

I believe the pivotal factor in implementing a new technology to an organization lies in the fundamentals followed by the management team.  Providing sufficient time for employees to prepare for change will increase their security in the change and also in their employment of the firm.  The integration of new routines is a naturally disruptive force to the system of operation.  This disruption can only be countered by a management team aimed at taking the shock factor out of the change of routine.

Laudon, K & Laudon, J. 2008.  Management Information Systems: Managing the Digital Firm, 11th Edition. Prentice Hall.

 Employees See Death When You Change Their Routines,” Harvard Business Review, by James R. Bailey and Jonathan Raelin, 11/23/10.

-Jovan Vaughn. M. B. A.

Marketing Strategist

solutionsandstrategies.co

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Writing A Marketing Brief

Composing a marketing brief provides the proper amount of research, evaluation, and planning needed to execute a successful marketing plan. The length is usually based on the size of the project and organization needs. Allocating time to each section will assure efficiency and often spur further innovation.

Marketing Brief

I. Introduction
a. Direction and Key Points – general purpose and idea of the marketing plan

II. Company Review
a. Company characteristics – System of operations (online customers, call center, scheduled appoints etc.)
b. Competitive environment analysis – identifying the industry leaders and the processes used

III. Marketing Objectives
a. Target market – who is the intended audience
b. Profile – defining the “call to action”
c. Sales objectives – Calculate breakeven point and the top end of estimations

IV. Implementing Strategies
a. Product Strategies – Product differentiations, advantages, and niche components
b. Price Strategies – Defining the strongest price point
c. Promotion Strategies – Plan to promote and raise awareness

V. E-Marketing Strategies
a. Original web content
b. Social media
c. Online risks
d. Email marketing
e. SEO
f. SEM

Jovan Vaughn, M.B.A.

Marketing Strategist

www.solutionsandstrategies.co

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Filed under Marketing Strategy